IMF gives go-ahead for $8 billion loan to Egypt

The IMF agreed to offer Egypt a loan worth 8 billion dollars under an Extended Fund Facility to support the country’s economic stability.

Following its review, the IMF noted that Egypt’s recovery was slowed by rising global inflation, foreign exchange shortages, and elevated debt levels.

Egypt is also struggling with new challenges such as the disruption of maritime traffic in the Red Sea and its impact on the Suez Canal revenue, a vital source for hard currency.

The fund expects Egypt’s growth to improve to 4.5% in 2024 after slowing to 3% last year.

Cash-strapped Egypt has received a boon recently from the Gulf, with a UAE company pledging to invest 35 billion dollars in a tourism project.

“The IMF emphasizes the importance of judicious use of these funds to rebuild buffers against future shocks,” the IMF said, urging Egypt to press ahead with reforms to enhance the performance of the private sector.